Renewable energy sectors are drenched in sunlight, as per the most recent Willis Renewable Energy Market Analysis
The insurance sector's approach to underwriting renewable energy technologies in Asia is expected to play a crucial role in determining the growth of the renewable energy sector in the region. This is according to the Renewable Energy Market Review 2025 published by Willis.
One technology set to make a significant impact is Floating Solar Photovoltaics (FPV). The review suggests that FPV is poised to play an increasingly important role in expanding Asia's renewable capacity, driven by technological innovation, supportive policy frameworks, and land-use competition challenges.
ASEAN markets are demonstrating strong interest in FPV projects, with developers actively participating and government tenders indicating strong growth potential. However, FPV projects face technical challenges such as floater design and the resilience of anchoring and mooring systems, especially in areas exposed to natural catastrophes. Thorough environmental data collection and engineering are essential to ensure FPV projects can perform reliably over time.
Rising energy demand, ambitious net-zero targets, and the cost-competitiveness of clean technologies are fueling renewable growth in ASEAN and broader Asia. Hybrid systems integrating battery energy storage and FPV are gaining traction, especially in areas with limited land availability. ASEAN governments are increasingly backing FPV through regulatory support and tenders, recognizing its potential to optimize renewable capacity while addressing land constraints.
Asia was the primary driver of the 140 per cent global growth of renewable capacity over the past decade, contributing 72 per cent of the global total. Optimism is anticipated to persist in the renewable energy sector, with the review highlighting emerging market dynamics across key regions and outlining strategies to navigate growing global uncertainty.
However, the insurance sector's cautious approach to underwriting emerging technologies such as FPV, BESS, hydrogen, and larger wind turbine models, due to high catastrophe exposure and the aggregation of insured assets, could impact the growth of the renewable energy sector in the region.
Severe weather events are directly damaging assets and causing significant challenges in the renewable energy sector. Innovation in peril diagnostics and broad parametric solutions is helping the market better manage volatility and uncertainty in the renewable energy sector.
Emerging technologies such as kinetic infrastructure, solar-integrated materials, nuclear fusion, and gravity-based storage demonstrate the continued interest in reshaping the future energy landscape. The renewable energy sector in Asia is experiencing increased competition due to the influx of new market entrants, which is enhancing overall capacity in the sector. Renewable and clean energy technologies are projected to grow exponentially to meet rising global demand.
In conclusion, the review suggests that floating solar is becoming a vital part of the renewable energy strategy in ASEAN markets, balancing technical and risk challenges with strong market and policy momentum. While there are challenges to be addressed, the outlook for the growth of renewable energy in ASEAN markets remains positive, driven by innovation, policy support, and a focus on risk management.
- The insurance sector's approach to underwriting emerging renewable energy technologies, such as floating solar photovoltaics (FPV), battery energy storage systems (BESS), hydrogen, and larger wind turbine models, could significantly influence the growth of the renewable energy sector in Asia.
- The renewable energy sector in Asia, particularly ASEAN markets, is seeing a surge in interest for FPV projects, with developers actively participating and governments providing regulatory support and tenders.
- Addressing technical challenges, such as floater design and the resilience of anchoring and mooring systems, is crucial for FPV projects in Asia, especially in areas with high natural catastrophic exposure.
- The growth of the renewable energy sector in ASEAN markets is driven by rising energy demand, ambitious net-zero targets, and the cost-competitiveness of clean technologies, with hybrid systems integrating FPV and BESS gaining traction, particularly in areas with limited land availability.
- Optimism for the renewable energy sector persists in Asia, as the region was the primary driver of global renewable capacity growth over the past decade, and is expected to continue growing exponentially to meet rising global demand.
